On the Problem of Empirical Research in Institutional-Evolutionary Economics, or Again on the Principle of Methodological Institutionalism

When forming a scientific research program, the question of the relationship between theoretical models and the empirical information required to conduct the study is one of the most difficult and causes constant methodological discussions. How realistic are the methodological assumptions used in a particular economic theoretical model? What problems do economists face when conducting empirical research and how is this related to the choice of a theoretical model? The paper considers these issues in relation to institutional-evolutionary economics (IEE) – one of the most promising heterodox research area of modern economic thought. The main attention is paid to the extent to which the features of the theoretical model adopted in IEE complicate the use of formalized methods in conducting empirical research and how to cope with this. The initial assumptions of the theoretical model of IEE are based on the principles of critical realism and include the following: 1) the economy is an open system, and, at the same time, 2) a dynamic evolutionary process unfolding in historical time, 3) occurring in a specific natural and social environment 4) in conditions of fundamental uncertainty. Economic development under such circumstances is determined by stabilizing institutional structures that allow the economy to adapt to an uncertain external environment. The shortage of mathematical tools for modeling this kind of complexly structured open dynamic systems predetermines the features of empirical research in IEI. They consist in relying on methods of retroduction of institutional structures and the causal-explanatory method, which, in turn, actualizes the principle of methodological institutionalism. It is proposed to introduce this principle into the system of methodological prerequisites of IEE.